REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #13

 

CLINTON/MARION/ WASHINGTON COUNTIES

 

FINANCIAL AUDIT

(In accordance with the
Single Audit Act and OMB Circular A-133)

 

For the Year Ended:

June 30, 2006

 

Summary of Findings:

 

Total this audit†††††††††††††             3

Total last audit†††††††††††††             2

Repeated from last audit†††††††††† 2

 

 

Release Date:

March 29, 2007

 

 

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

 

 

To obtain a copy of the Report contact:

Office of the Auditor General

Iles Park Plaza

740 E. Ash Street

Springfield, IL 62703

(217) 782-6046 or TTY (888) 261-2887

 

This Report Digest and Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

 

 

 

 

 

SYNOPSIS

 

 

 

         The Regional Office of Education #13 had one program with an excess cash balance at June 30, 2006 that had not been obligated and the balance was not refunded to the granting agency by August 15, 2006.In addition, the Regional Office of Education #13 had interest income earned from federal funding in excess of $100 that was due back to the grantor agency for several programs.

 

  • The Regional Office of Education #13 did not comply with certain statutory administrative requirements.

 

  • The Regional Office of Education #13 classified $15,067 in capital outlay expenditures as supply and material expenditures.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

††††††† {Expenditures and Revenues are summarized on the reverse page.}


†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††

REGIONAL OFFICE OF EDUCATION #13

CLINTON/MARION/WASHINGTON COUNTIES

 

FINANCIAL AUDIT

(In accordance with the Single Audit Act and OMB Circular A-133)

For The Year Ended June 30, 2006

 

 

FY 2006

FY 2005

TOTAL REVENUES

$2,696,783

$2,678,057

Local sources

$608,496

$472,382

% of Total Revenues

22.56%

17.64%

State Sources

$1,770,832

$1,487,311

% of Total Revenues

65.66%

55.54%

Federal Sources

$317,455

$718,364

% of Total Revenues

11.77%

26.82%

 

TOTAL EXPENDITURES

$2,677,910

$2,683,609

Salaries and Benefits

$2,097,237

$2,100,652

% of Total Expenditures

78.32%

78.28%

Purchased Services

$413,517

$445,806

% of Total Expenditures

15.44%

16.61%

All Other Expenditures

$167,156

$137,151

% of Total Expenditures

6.24%

5.11%

 

 

 

TOTAL NET ASSETS

$1,691,230

$1,672,703

 

 

 

INVESTMENT IN CAPITAL ASSETS

 

$48,144

 

$37,912

 

 

 

††††††† Percentages may not add due to rounding.

 

REGIONAL SUPERINTENDENT

During Audit Period:Honorable David Erlinger

Currently:Honorable Keri Garrett

 

 

 


 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #13 had one program with an excess cash balance at June 30, 2006 that had not been obligated and the balance was not refunded to the granting agency by August 15, 2006.The excess cash balance was $53,388.The Regional Office of Education #13 also had interest income earned from federal funding in excess of $100 that was due back to the grantor agency for several programs.The interest income due back totaled $2,241.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #13 did not comply with certain statutory administrative requirements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #13 classified $15,067 in capital outlay expenditures as supply and material expenditures.††

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

 

UNEXPENDED GRANT FUNDS AND INTEREST INCOME

 

The Regional Office of Education #13 had one program with an excess cash balance at June 30, 2006 that had not been obligated and the balance was not refunded to the granting agency by August 15, 2006.The excess cash balance was $53,388.

 

The Regional Office of Education #13 also had interest income earned from federal funding in excess of $100 that was due back to the grantor agency for several programs.The interest income due back totaled $2,241.

 

The Illinois Grant Funds Recovery Act (30 ILCS 705/5) requires that all grant funds that have not been expended or obligated by the end of the grant period be returned to the granting agency within 45 days after the end of the period.The Act also states that all interest earned on grant funds held by a grantee shall become part of the grant principal when earned and be treated accordingly for all purposes unless the grant agreement provides otherwise.

 

In addition, the Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (34 Code of Federal Regulations Part 80.21) requires that interest earned on federal fund balances in excess of $100 be remitted back to the federal granting agency.(Finding 06-1, page 12a).

 

The Regional Office of Education #13 accepted the auditorís recommendation and responded it will return the unspent funds to the granting agencies.

 

 

CONTROLS OVER COMPLIANCE WITH LAWS AND REGULATIONS

 

The Illinois School Code (105 ILCS 5/3-14.11) requires the Regional Superintendent to examine at least once each year all books, accounts, and vouchers of every school treasurer in her educational service region, and if she finds any irregularities in them, to report them at once, as directed by the School Code.

 

The Regional Office of Education #13 did not examine at least once each year all books, accounts, and vouchers of every school treasurer in the educational service region.Regional Office officials noted they believe the mandate is outdated and that they are satisfying the intent of the statute by other reviews they undertake.This mandate has existed in its current form since at least 1953.†††††††††

 

The Illinois School Code (105 ILCS 5/3-14.5) also requires the Regional Superintendent to visit each public school in the county at least once a year, noting the methods of instruction, the branches taught, the textbooks used, and the discipline, government and general condition of the schools.This mandate has existed in its current form since at least 1953.

 

The Regional Superintendent performs compliance inspections for each public school in her region on a rotational basis every three years instead of annually.The Illinois Public School Accreditation Process Compliance Component document completed at these visits includes many of the items delineated in 105 ILCS 5/3-14.5, but does not include a review of the methods of instruction and the textbooks used in the district.(Finding 06-2, pages 12b-12c)

 

The Regional Office of Education #13 responded that with regards to compliance with 105 ILCS 5/3-14.11 and 105 ILCS 5/3-14.5, the Illinois Association of Regional Superintendents of Schools and the Illinois State Board of Education have agreed to seek legislation to remove duplicative and/or obsolete sections of the Illinois School Code.Both parties believe that 105 ILCS 5/3-7 of the Illinois School Code and 23 Ill. Adm. Code 1.20, respectively, contain more current, thorough, and comprehensive requirements concerning a public school districtís financial transactions and visitation of public schools by the Regional Superintendent.As a result, the two parties working together will seek legislation to repeal these two sections of the Illinois School Code.

 

 

IMPROPER EXPENDITURE CLASSIFICATION

 

The Regional Office of Education #13 classified $15,067 in capital outlay expenditures as supply and material expenditures instead of classifying capital outlay expenditures in excess of their established capitalization threshold, in the correct account code, and including those items on their capital outlay listing.

 

The Regional Office of Education #13 is required by the Illinois State Board of Education to classify expenditures in the appropriate functional category.In addition, the Regional Office of Education #13 is required by Generally Accepted Accounting Principles to capitalize capital asset purchases that meet or exceed their established capitalization policy and expense the capital asset over its estimated useful life.(Finding 06-3, page 12d)

 

The Regional Office of Education #13 accepted the auditorís recommendation.

 

 

AUDITORSí OPINION

 

Our auditors state the Regional Office of Education #13ís financial statements as of June 30, 2006 are fairly presented in all material respects.

 

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:JRB

 

 

SPECIAL ASSISTANT AUDITORS

 

Our special assistant auditors were Kemper CPA Group LLP.